We see two primary factors that led to the softness in international sales. First was the general weakness in Europe and maybe economic confusion, austerity measures et cetera. And second, many international customers due require the use of a TASER CAM with their ECDs, electronic control devices, of course. TASER CAM HD that we developed for the X2 was not ready to ship until the first quarter 2012, we believe this did delay international adoption and even evaluation be it two platform as customers waited for the TASER CAM HD.

Two important bright spots in fourth quarter revenues we should highlight. U.S. law enforcement sales were up approximately 25% over the same quarter last year, primarily driven by the X2. Also AXON and Evidence.com gained some significant traction in the marketplace, fourth quarter bookings increased by over 140% sequentially from a small base of $220,000 in the third quarter to $537,000 in the fourth quarter. We attribute the increased traction to the fact that we began selectively showing the AXON Flex unit, which we announced earlier this week and integrating upgrades into our fourth quarter AXON deals.

I’ll be back to talk more about video and the cloud business after Dan covers the numbers in detail. but before we do that, I do want to talk a little bit about the large balance sheet adjustments. So following the successful launch and strong demand for the new X2 and the AXON Flex we announced earlier this week, we are writing down the inventory and tooling where the previous generation TASER X3 and the first generation TASER AXON, both the X2 and AXON Flex have shown strong demand right from their launch. And the adoption of these products from both new and existing customers has been impressive. Therefore the demand for legacy products has diminished as our newer products are showing much higher volume potential.